Management & Operations

N.Y. MTA buys insurance protection for future 'Sandy' storms

Posted on July 31, 2013

New York CVB photo by Joe Buglewicz
New York CVB photo by Joe Buglewicz
The Metropolitan Transportation Authority (MTA) has secured $200 million of insurance protection that will help pay for future repairs for damage to its infrastructure in the event of a storm featuring destructive storm surges similar to those experienced during Superstorm Sandy. The insurance protection has been funded through the offering of “catastrophe bonds” by MetroCat Re Ltd., a special purpose insurer.

This is the first time that the MTA has accessed the capital markets to manage its property damage risks, and it is the first catastrophe bond ever issued to protect solely against storm surge. The MTA’s premium cost is well below quotes that MTA received this spring for traditional property coverage.

“In the aftermath of Superstorm Sandy, the traditional avenues we use for insurance and reinsurance contracted dramatically, making it exceedingly difficult for the MTA to obtain insurance,” said MTA Chairman/CEO Thomas F. Prendergast. “But as a result of this savvy and novel reinsurance arrangement, we are now in a stronger position should our area, God forbid, face another large-scale storm-surge event within the next three years.”

The transaction provides protection in the unlikely event that the water level reaches designated heights in the New York City Metropolitan Region during any hurricane, tropical cyclone or tropical storm through August 5, 2016.



 


View comments or post a comment on this story. (0 Comments)

More News

MCI wins 2018 APTA AdWheel Grand Award for D45 CRT LE debut

The company's next-generation Commuter Coach debut won top honors in the category, “Best Marketing and Communications to Increase Sales Special Event.”

GMs discuss impact of first-, last-mile solutions

We asked top transit officials which mobility option (microtransit, autonomous vehicles or bike-share) do you feel could have the most impact at your agency?

Transit Industry Survey Finds Customer Experience is Vital

Transdev is sharing results of a recently completed survey to help the entire industry understand how the goals and vision of transit agencies are evolving across the country.

D.C. Metro inspector to review Silver Line construction issues

Including concerns around the quality of concrete used in the project and other construction elements and practices.

Transportation workers form coalition to stop driverless buses in Ohio

If transportation authorities introduce autonomous vehicles or wages start to fall, the union will organize a strike, according to union chief.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation